5 Perks of Being a First-Time Home Buyer
The decision to buy your first home is a big one. It may seem daunting, but keep in mind that many people successfully own their home while enjoying added freedom and stability.
There are many perks that come along with the decision to own your first home. Here are some of the biggest ones:
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Reap the benefits of a first-time homebuyer program
Many first-time homebuyers are weary to commit to a mortgage and the responsibility of owning a home. However, there are many first-time homebuyer programs available to ease the financial burden and guide new homebuyers through the process.
These programs offer perks such as lower down payments, electronic mortgages, and no limitations on income. For example, the first-time homebuyer program offered by Mountain America Credit Union allows buyers to put as little as $1,000 down on their first home, without the burden of Private Mortgage Insurance.
Use the first-time buyer mortgage calculator to help you understand the impact your mortgage will have on your monthly budget.
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Tax benefits
The government incentivizes home ownership through available tax deductions* to ease the financial burden on homeowners. Some of these tax breaks include deductions on the interest and property tax payments, and negating taxes on the imputed rental value of the property. These deductions mean you may see better tax returns and, therefore, annual savings. -
Predictable monthly payments
While your rent can increase at the whim of your landlord, your monthly mortgage payment will remain fairly static—assuming you have a fixed-rate mortgage and don’t refinance down the road.
Additionally, your monthly housing payments go toward your ownership, not into someone else’s pockets. When you’re done with your payments, you own your home outright. With that ownership, you create more options for your future self and increase your overall net worth. -
Owning an asset that can appreciate
Buying a home in the right market means that your property will appreciate in value. You can choose to sell it later, hopefully for more than you originally paid, and use the profits how you like. The money you’ve poured into it becomes an investment rather than just a monthly bill. -
A secure retirement
Ideally, the longer you own your home, the more your investment appreciates over time. By the time you retire, you’ll own a great property that can help supplement your retirement fund. You can continue living in your home without the financial burden of a rent or a mortgage payment. On the other hand, you could sell the house and downsize to a home or apartment that’s easier to maintain, using the excess money as income. Or, you could rent the home and generate additional income.
*Consult a tax adviser for further information regarding the deductibility of interest and charges.
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